A Shot Across The Bows For Chester FC

Ian

Ian began writing Twohundredpercent in May 2006. He lives in Brighton. He has also written for, amongst others, Pitch Invasion, FC Business Magazine, The Score, When Saturday Comes, Stand Against Modern Football and The Football Supporter. Ian was the first winner of the Socrates Award For Not Being Dead Yet at the 2010 NOPA awards for football bloggers.

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2 Responses

  1. Richard says:

    Interesting article Ian, although I don’t think the actual situation is anywhere near as is being made out by the media, fans, outsiders or even the board.

    The loss, whilst substantial is, still, a projected loss. As far as I know the bulk of it is as a result of a lower than projected average gate throughout the course of the season (projected was around the 2,700 mark, actual is nearer 2,400), but as Chester reach the business end of the season it is very likely that crowds, and the average gate over the course of the season, will increase. We saw this last year where we were the average gate was similar to what it is currently, but was boosted by the last few ‘big’ matches of the season with crowds of 5,000 vs Northwich and 3,000 vs Marine.

    The other main reason for expenditure appears to be revenue being lower than expected, which has led to some overspending. The club developed the Legend’s Lounge and club shop, but the costs of this have not yet been met. There have been several disappointing revenue results (eg. club website, catering) which have added up. But, the point I’m making about this spending is that it is a long-term investment. The revenue can be improved with a little thought too.

    So, roughly, the factors have been overspending (on long-term investments), lower than expected revenue (especially from the gate), but by this being identified early the club is actually in a very good position to cover the majority of the loss, and as you point out, we won’t be in debt due to bank reserves that we have.

    Yes, the club should try not to make a significant loss every season and will have to be more financially prudent, but the reasons for these losses are understandable and there is time for the gap to be bridged.

    Right, that’s all, sorry for the slightly scattergun approach to my thoughts!

  2. Nathan says:

    Interesting article. I hope financial irregularities will be exposed fully and openly.

    Football finances are crazy at all levels. As we found out the cost of getting promoted to national football from a low level are greater than the costs of staying there. I have no fears for Chester’s long-term sustainability at Conference National level with their stadium set-up, fan-base and ownership structure.

    I look forward to welcoming Chester to KM next season.

    “Chester traded comfortably in the clack” amused me though.

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